Wednesday, July 31, 2013

The myth of the “compensation culture” – the truth about cuts to workplace safety


TUC Congress House_front

A TUC-backed report has today accused the government of being dishonest about the UK’s ‘compensation culture’ in order to justify cutting basic health and safety protections at work.

It says instead that thousands of workers suffering deadly occupational diseases are being denied payouts as a result of these cutbacks.

The report, by the workers’ health journal Hazards, shows that far from being a compensation free-for-all, as ministers claim, the number of people actually receiving awards for work-related injuries or diseases has fallen by 60% over the last decade – down from 219,183 in 2000/01 to 87,655 in 2011/12.

The report, based on official government figures, shows even the families of those dying from occupational diseases have little chance of securing a payout.

For most occupational cancers the chances of getting any compensation payout is below 1 in 50.
While more than 4,000 workers a year die of work-related chronic bronchitis and emphysema, just 59 received compensation in 2011/12.

For those suffering from work-related stress, anxiety and depression the chances of getting compensation are even smaller. Of the 221,000 cases in 2011/12, just 293 resulted in a payout.

Hazards Editor Rory O’Neill, Professor of Occupational Health at Stirling University and the author of the report, said: “The government’s cynical promotion of a compensation culture myth means many workers who are dying in pain are also dying in poverty.

“We are seeing a denial of justice because the government is putting the health of the insurance industry and the safety of the most dangerous rogues in the business community over the health, safety and survival of people at work.”

The TUC says the findings reveal the true extent of compensation payouts in the UK and suggests that by spreading myths to justify weakening health and safety laws, the government is making it even harder for victims to get justice.

The report says ministers have cynically exaggerated vexatious claims in order to introduce a series of policies that make it harder for victims to seek compensation.

And critics warn of more to come.

Last May, the Justice Secretary Chris Grayling said: “We are turning the tide on the compensation culture.

“It’s pushing up the cost of insurance, and making it more expensive to drive a car or organise an event. It’s time the whole system was rebalanced.”

His comments came as the Coalition abolished legal aid for personal injury claims and as arrangements for ‘no-win, no-fee’ contracts were changed so that victims must now make a payment of up to 25% of any payout to their lawyers.

TUC General Secretary Frances O’Grady said: “The government is trying to brainwash people into thinking the UK has a rife compensation culture.

“However, the facts tell a very different story. Even those dying from work-related diseases have precious little chance of getting a payout.

“The true government motive here is to weaken health and safety laws and make it harder to for victims to pursue claims. Unfortunately the end result is likely to be a much higher rate of workplace accidents, injuries and illnesses in the future.”

Since coming to power in May 2010,  the government has slashed the coverage and budget of the Criminal Injuries Compensation Scheme, and outlawed strict liability claims where there has been a criminal breach of safety law by the employer but negligence hasn’t been proven.

In addition, ministers have cut the number of workplace inspections carried out by the Health and Safety Executive (HSE).

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